'Co-production of service', or 'co-creation' are key concepts in service management.
These concepts illustrated below using building bikes as an example.
Watch the two videos below, both about the building of bikes. The first is from the British Film Council and is an historical film about 'How a bicycle is made' . The film shows a manufacturing production process for bikes in 1945. Then watch Video 2; 'The Inverted Bike Shop'.
Note how the relationship approaches between the producer and consumer are completely different. In the first video, the factory production processes of making bikes infer mass marketing approaches to sell them. The consumer needs to be persuaded to buy the product, and individuals buying the units are anonymous.
The second video shows a relationship marketing approach (see Chapter 4 of Johnston, Clark, and Shulver, 2012). The video shows how value is created in tandem with the consumer; the consumer is co-creating value with the bike shop. In Video 2 the producer develops resources to support the customer's value creation. Value is created by the consumer with the support of the producer.
One process has not replaced the other. Bikes are still mass-produced in exactly the same way as that shown in the first 1945 film; this is just more likely to happen in China than Britain! However, Video 2, 'The Inverted Bike Shop' does indicate the way things have progressed regarding the importance of customer service in production. Co-creation of value is now a central idea in all serve innovation.
These concepts illustrated below using building bikes as an example.
Watch the two videos below, both about the building of bikes. The first is from the British Film Council and is an historical film about 'How a bicycle is made' . The film shows a manufacturing production process for bikes in 1945. Then watch Video 2; 'The Inverted Bike Shop'.
Note how the relationship approaches between the producer and consumer are completely different. In the first video, the factory production processes of making bikes infer mass marketing approaches to sell them. The consumer needs to be persuaded to buy the product, and individuals buying the units are anonymous.
The second video shows a relationship marketing approach (see Chapter 4 of Johnston, Clark, and Shulver, 2012). The video shows how value is created in tandem with the consumer; the consumer is co-creating value with the bike shop. In Video 2 the producer develops resources to support the customer's value creation. Value is created by the consumer with the support of the producer.
One process has not replaced the other. Bikes are still mass-produced in exactly the same way as that shown in the first 1945 film; this is just more likely to happen in China than Britain! However, Video 2, 'The Inverted Bike Shop' does indicate the way things have progressed regarding the importance of customer service in production. Co-creation of value is now a central idea in all serve innovation.
How a Bicycle is Made (1945) from British Council Film on Vimeo.
The Inverted Bike Shop from Show Love on Vimeo.
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